It is the second week in November 2015 already and many are frustrated again as to why the RV did not yet happen.

There is no reason to be frustrated. So far we are seeing everything is on path for a late Dec 2015 or early 2016 RV window of opportunity. This is just a very strong indication for this window. I am not saying it WILL RV. We base this on FACTS not on some secret source whispering intel in my ear……lol…..

Many criticized me on my last post about the US attempting to bring down the National debt by using these early dinar exchanges and oil credits. They claimed that the US debt did increase and so how can they be bringing it down.
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These people once again are “know it alls” and have to prove to everyone how smart they are. So then they should be able to back up with they say?

So to answer your question and challenge - If you do not add to the deficit at the past alarming rates are you in fact curbing the spending and thus at least containing the deficit?

How do you believe Obama was able to get the last budget bill (in deficit spending) approved so quickly?

What he is attempting to do is SLOW DOWN the rate of spending so as not to add so much, if any, to the National debt. Overtime if they can get the budget balanced, without any major disruption in the economy, this will be a huge goal accomplished. This is the key too.

They do not want to slow down the US economy down cause this will only lessen revenues and thus make it even harder to balance the budget. It is a tricky balancing act. It must be done gradually. So the USA too is balancing many balls all at once.

Many compare the future dinar exchange in the US reserves (post RV) to what happened at a result of the Kuwait currency revaluing. They believe it is going to magically pay off all the national debt of the USA upon an RV. Really? Who the hell told you this?

This is just such a ridiculous notation I need to address it once again. I am going to tell you one more time. This will NOT HAPPEN with the dinar reserves the USA now possesses. In fact it did not happen with the Kuwait revaluation either.

All the Clinton administration did was balance the budget thus creating a surplus of revenues for that quarter. Just one quarter out of the 32 quarters of his administration. This surplus revenue was then given away as economic incentives to the citizens (to gain more popularity for a second upcoming election?) by the next G.W. Bush administration.

So where should the money instead have gone? Should it have gone to pay off some of the national debt ? It did not as history shows us.

So this plan with Iraq is to use the oil credits from the turn-in of our dinars to generate wealth (part of the “delete the zeros” project) for the USA. This justified as paying down the war debt.

This usually happens after a major war, as the losers are forced to pay off the debt of the winners. The money to be made off these oil credits by brokering oil over the next 20-30 years will go first towards supplementing the existing year’s budget so they don’t have to borrow so much, if any.

Next any surplus can then go to pay down some of the national debt of trillions $$$ going towards the war debt. They can not simply buy too much oil on credits all at once because of two factors:

1) they have an agreement with Iraq that only so much of these oil credits are to be used each year beginning in 2013. So this deadline has already passed and the US is now already using these oil credits.

2) Until the currency officially comes back online with a “real” value (now you can see why Iraq is delaying the RV) they are not about to publicize what they are doing since they would encourage a mad rush for millions more to purchase IQD and crash Iraqi’s economy. Do you think Iraq needs this pressure right now with their currency economic situation? Imagine if this were to happen? So just enough is just right and for now they have the balance needed.

So all you “smarties” out there should also know they will never completely pay down the USA national debt. Having a national debt can be healthy for country’s economy. But then again not too much.

So now YOU go do your homework and YOU come back and tell everyone why having a national debt is so important to a nation’s economy since you are so smart and want to bring us the intel.

But the larger question is who is going to pay now for this fight against ISIS? We know this is costing the USA and other coalition countries millions each and every day. Maybe some of you “smarties” and “know-it-alls” out on these dinar forums can tell us….lol…..lol…..?

Maybe the answer lies is this question - Is there more to gain in the future than they are now spending….hint…hint…hint….lol….!

Today’s News

Today is Monday November 9th and still no RV. Are you surprised? So there was once again nonsense talk of an RV this past weekend. You shouldn’t be surprised that this did not occur if you have been reading my news letters.

We are now into the second week of November already and I we see this movement to get the budget completed going on. As we inch our way towards December the progress we have been long awaiting is happening each week and all is looking very good.

Today I want to concentrate on sorting out some of the “balls” that Iraq is juggling right now. If you know these projects or programs ( refer to them as the juggling balls) they are working on, then it is much easier to read the articles and know what they are talking about. Right now this is the pulse of Iraq. I have also tried to give you a brief update on each of these items from the news over the weekend and so far this week.

Now that you know the list let me review each of these with you and explain them. By doing this you should be able to read just about any article and easily place it in one of these categories. By placing it in the category you can then connect the dots and see the reason why they are doing what they are doing the timelines.

But remember many are interconnected and you can’t separate the impact or priorities on other issues. There are many golden nuggets so read carefully.

These categories (or projects) are the reasons for just about EVERYTHING you see going on right now in Iraq.

We have seen the settling of Article 140 of the constitution. There is still however issues on the oil and gas law as to how Kurdistan will be allowed to see excess oil beyond the budget quotas. I do not believe this issue will be resolved until just after the 2016 budget is approved.

We have seen the Parties law get passed and is under implementation. Legitimate parties had 90 days to register and to qualify. This deadline is passed.

The Three Presidencies law still needs a second reading.
Hydrogen Carbon Law (HCL) – I believe this law is done but payments of the 17% is not always on time
Amnesty- last week we read they wanted to address this in Saturday’s session. They did and want now to vote on it this week. Let’s watch for it.

Implementation of the Federation Council- gives the people more voice in the legislative process, another body of legislation like the US Senate.

Establishment of a National Guard.. The law to implement this is passed last week. We had previously read articles telling us they already set up boot camps for this purpose and staffed with coalition advisors. But there is still an open issue as to how they will recruit enough men to man these units. Thus a “conscription” draft like law is on the table and we watch for more details on this topic. This is also interconnected with fighting terrorism as many from my list of “juggling balls” are interconnected with each other.

A little more information on the history of the Erbil Agreement. You can see how these currency laws for reconciliation all fit into the process.

First let me say that 2015 budget was the very first year that Iraq was on its own to find funding to support its budget. They are no longer depend on the scrutiny on the DFI fund distribution from post was days. They now control their own revenues and budget their own expenditures.

When they finally get out of sanctions fully by getting their currency returned to them, the remaining balance in the DFI fund will be returned to them. This could help too in balancing the 2016 budget.

So we hear that parliament now has the 2016 budget. If you read it you will determine there is a huge gap in that nearly half of it is deficit. So how will they fill this gap? This is the heart of many of the REFORMS, as Abadi is trying to consolidate and make the government leaner.

Earlier this year for the 2015 budget deficit we witnessed the socking of the 3 presidential deputies VP and the reduction in the ministries. Later this year we witnessed the salary reduction program and how this is saving billions each month. This is also interconnected with combating corruption as it has dismissed these expensive perks, salary favoritism and inflated political related salaries.

Abadi has put the govt employees on a standard govt pay scale. No favoritism, no special perks. Could this help in salary reduction once the IQD rate increases? Sure it will but this RV is not the driving force. The driving is and has been all along to save money.

Then just Friday we learned and I quote from a recent article – “Office of the Prime Minister Haider al-Abadi attributed the government's decision to withdraw dozens of bills from the House of Representatives "not to lend themselves with reforms and government spending."

These reforms are not just about combating corruption, instead they are more about finding money to meet the budget. Why can’t they just trim the budget instead? Trimming the budget has already been done and they are now as lean as they can be, yet still provide the needed services.

Iraq applied to the World Bank for a “soft” loan to help cover a portion of the deficit. In return the World Bank has sent advisers to the Iraqi State Audit to address and assessing the financial situation there.

The UN team offers a set of recommendations to the Iraqi government make clear reforms on salaries that exceed 70% of the country's total revenue, and drain all the capabilities of the Malian government, as well as the lifting of government subsidies for food in the ration card items, and also the removal of subsidies on fuel prices and oil derivatives.

Latest news from over the weekend is the World Bank is willing to give Iraq a substantial loan but wants to charge a rate of 11% interest on the borrowed money. Iraq is still attempting to renegotiate the rate.

Prime Minister Haider al-Abadi, received in his office on Sunday, Parliament Speaker Salim al-Jubouri, the two sides stressed the importance of accelerating the adoption of the state budget law for 2016.

Iraq is targeting Dec 1st to complete the budget and have it passed thru parliament.

[Fighting ISIS / DAASH, breaking off from the Iranian influence]

Iraqi forces are said to be planning to mount a huge offensive to retake the city of Mosul from Islamic State militants.

It is not clear when Iraqi forces will be ready to attack the northern city. The much anticipated counter-offensive has been repeatedly postponed because Iraqi forces are unprepared and bogged down in battle elsewhere.

Mosul was overrun by Islamic State in June 2014 and millions are now banned from leaving by the hardline militants, who have proclaimed a caliphate straddling Iraq and Syria.

Operations in Anbar are now said to be winding down and I believe Iraq troops will be moved into the Mosul area next for this offensive.

They are being stingy on telling us too much on their plans and we should all understand that ISIS is reading the news too.